German “Lahmeyer” is expected to complete the studies of establishing a wind energy plant joint project between the New and Renewable Energy Authority (NREA) and Emirati company “Masdar” with a capacity of 200mw and investments worth $250m next month.
Sources at the authority told Daily News Egypt that with the Holding Company for Electricity, NREA is looking into ways to implement the project, especially that the capacities to be produced will be bought by the former according to a tariff that has not been decided yet.
The sources explained that after the studies are carried out, officials from NREA and Masdar will hold a meeting to agree on the financial part of the project, then negotiations will take place with the Egyptian Electricity Transmission company (EETC) to discuss the tariff for each sold kilowatt.
The sources revealed that Arab funds and foreign banks have agreed to take part in funding the project for EGP 150m. The names of these bodies have not been revealed.
Egypt plans to generate 20% renewable energy of the total production by 2022. Egypt’s current energy production is 50,000mw, including 2,400mw produced from hydropower, which is an equivalent of 5.5%, in addition to about 1,000mw from wind energy, and 170mw from solar energy, an equivalent of 2.6%.
The sources said that there are real chances for renewable energy to contribute to the energy mix in Egypt as an integrated program was adopted to encourage the private sector to take part in developing renewable energy projects in a way that attracts direct foreign investment.
The sources pointed out that Egyptian energy strategy which focuses on diversifying electricity sources and improving the efficiency of energy, as well as increase the participation in producing renewable energy in the energy mix and expand the renewable energy systems in the sectors of irrigation, transport, agriculture, and industry to reduce the reliance on fossil fuels and carbon dioxide emissions, in addition to creating more jobs.